FHA: Federal Housing Administration - FHA short sales and FHA backed lending.
There are currently 14 blog entries related to this category.
Tuesday, March 4th, 2014 at 11:42am. 84 Views, 0 Comments.
In the middle of a pending divorce, this Torrington CT homeowner called me to discuss the possibility of getting out of his upside down home. Although he had recently bought the home, the fresh divorce made the home unaffordable and he wanted to relocate and start over.
The home went on market and two months later a buyer was secured. Bank of America held the loan and dragged painfully along in their usual fashion for the next 4 months, with limited progress. We then caught a lucky break as Bank of America sold the loan to PennyMac.
PennyMac proved to be a delight to work with as they quickly processed the file and produced an approval less than a month later...and soon after this PennyMac FHA short sale CLOSED!
Thursday, January 2nd, 2014 at 3:10pm. 359 Views, 0 Comments.
Wells Fargo FHA short sales are pretty predictable nowadays, but boy are they SLOW!
When this Manchester, Connecticut homeowner could no longer afford her home and had fruitlessly pursued a loan modification she was left with no option but to pursue a short sale.
Since FHA short sales allow pre-approval, we started to pursue the short sale as soon as the property was listed. Three and a half months later when we finally secured a buyer Wells Fargo had made little progress. Despite constant follow up, Wells Fargo still lagged for 2 more months before finally approving this FHA short sale. The buyers side lender also proved slow and several hiccups causing more delays followed. Finally 7 months after first starting our journey this Wells Fargo FHA…
Monday, October 21st, 2013 at 10:33am. 1071 Views, 0 Comments.
When these Enfield, CT homeowners were relocated to Florida, they found themselves with over $100,000 of negative equity and with no way to make up the difference. Rather than just allow the home to foreclose, they decided to try and short sell the home.
It took just over 2 months to secure a buyer for the home, while we simultaneously pursued the FHA short sale approval from Chase. Unfortunately Chase burned through an additional 3 months getting us the approval during which time the buyers loan documents expired and they needed to reapply for their loan. Once the buyers were once again ready to close, Chase decided they now wanted $30,000 more for the property, despite an appraisal proving our original sales price.
The sale fell apart and the…
Wednesday, August 21st, 2013 at 12:13pm. 2343 Views, 0 Comments.
Per Mortgagee Letter 2013-26 - Effective August 15, FHA has updated their requirements for getting a new mortgage after a short sale, foreclosure or bankruptcy. FHA has expanded their extenuating circumstances to include those who had a devastating credit impact as the result of unemployment or severe income reduction.
FHA is allowing for the consideration of borrowers who have experienced an Economic Event and can document that:
- Certain credit impairments were the result of a Loss of Employment or a significant loss of Household Income beyond the borrower’s control;
- The borrower has demonstrated full recovery from the event; and,
- The borrower has completed housing counseling.
Tuesday, June 4th, 2013 at 9:01am. 814 Views, 0 Comments.
When forced to choose between his 1 bedroom condo and his new family of 3, this CT homeowner decided it was time to let go of his bachelor condo. Unable to rent the property to cover its payments and unable to find $70,000 to cover the lost equity on the home - my client decided to short sell the property.
The long road ahead started brightly enough as a buyer was secured in just 6 weeks. It didn't take long for Wells Fargo to deny our file for "lack of hardship". Carrying two sets of household expenses and falling behind apparently was just not hard enough....the buyer walked.
We went back on market for round 2. Another month later we secured our second, very patient buyer. We resubmitted the file...and several weeks passed until we were denied…
7 months of needless torture with McCue Mortgage- an FHA short sale success story in Meriden, Connecticut
Thursday, March 28th, 2013 at 7:57am. 4289 Views, 0 Comments.
McCue Mortgage strikes again! Never failing in their eternal effort to make every short sale a painstaking nightmare, McCue makes this Meriden, CT short seller pay dearly for trying to do the right thing and avoid foreclosure...
With employment lacking, this Meriden couple had employment opportunities several states away, but found themselves over $50,000 short to be able to sell their home. Looking to cut everyones losses they decided to short sell the home. The home was listed and immediately a short sale package headed to McCue on this FHA short sale.
Unfortunately McCue doesn't care about homeowners or saving money (perhaps because taxpayer funded FHA picks up he losses???), and a WHOPPING 6 months of McCue fumbling around followed. The two…
Wednesday, April 18th, 2012 at 7:02am. 909 Views, 0 Comments.
GMAC - now my very favorite lender to work short sales with - delivers again.
When this Connecticut homeowner first called me, he seemed quite skeptical that a short sale was a possibility for him. Given his circumstances he was sure that his only option was to simply walk away and let the home foreclose as he believed he would never be approved for a short sale. I believed otherwise.
As the FHA PFS (pre-foreclosure sale) program allows preapproval, we immediately sent a full short sale package to GMAC and the home went on market. 7 weeks later a buyer was secured, which coincided perfectly with the timing on my sellers approval into the FHA PFS program. Unfortunately our FHA appraisal came in a tad high and the home had some inspection issues so…
Tuesday, April 17th, 2012 at 12:21pm. 953 Views, 0 Comments.
MetLife...The only positive thing I can say about this bank is that I am overjoyed they are no longer writing new loans since January 13, 2012. They truly do not belong in the mortgage servicing business.
I listed my clients home in June of 2011. Since they had an FHA insured loan, and the FHA short sale process is rather simple and predictable, I mistakenly assumed we were in for a smooth ride.
Boy, was I wrong. MetLife has one of the worst and most unresponsive loss mitigation departments I have ever seen. Not only did they blatantly disregard our file for weeks and months on several occasions, they even failed to follow FHA guidelines. On several occasions we were forced to get HUD to intervene to keep the file moving along.
Tuesday, April 17th, 2012 at 11:34am. 705 Views, 0 Comments.
McCue - Where did you go wrong?
McCue Mortgage used to be a pleasure to deal with and was generally efficient in their short sale processing...and then something happened. Some new folks showed up in loss mitigation...and the rest was all downhill.
This Meriden CT home first sold within a month on market in a multiple offer situation. The buyers were paying over market value. A full short sale package and high hopes headed over to McCue.
Four months passed as McCue's new loss mitigation staff fumbled around with our short sale file, ultimately declining the file. McCue cited lack of default as the reason for the decline, despite the fact FHA guidelines do not call for a default in order to get approval into the FHA Pre-foreclosure Sale…
Tuesday, February 14th, 2012 at 8:16am. 1076 Views, 0 Comments.
BB&T – Branch Banking and Trust Company is a rather small lender. This particular loan was an FHA loan, which has its advantages to the short sale seller.
We submitted the short sale packet as the property went on market. It took over two months for BB&T to take real action on the file, which happened to coincide with the time we secured a strong cash buyer for the home.
To our surprise - the short sale approval arrived just over a week later, and shortly after we closed.
APPROVED AND CLOSED WITH FULL DEBT FORGIVENESS: $83,000
FHA SELLER INCENTIVE: $1,000
TOTAL TIMEFRAME LIST TO CLOSE: 3 MONTHS